Best Bankruptcy Attorneys in Bellingham

FAQs

• Where do I file for bankruptcy in Bellingham, Washington?

  To file for bankruptcy in Bellingham, visit the U.S. Bankruptcy Court for Western District of Washington at 700 Stewart St., #6301 Seattle, WA 98101.

• Where can I get bankruptcy forms in Bellingham, Washington?

  Bankruptcy forms in Bellingham can be obtained from United States Court for Western District of Washington. These forms are accessible here: https://www.legalconsumer.com/bankruptcy/bankruptcy-form.php?CITY=Bellingham&ST=WA

• Do married couples have to attend a credit counseling class before filing for bankruptcy in Bellingham?

  Yes, according to the Washington Bankruptcy Code, married couples in Bellingham must attend a credit counseling class before filing for bankruptcy. However, each spouse should take each class and receive separate credit counseling certificates. They must complete the course within 180 days and attend a 90-minute briefing by Bellingham government-approved credit counseling agencies via phone, in-person, or online, which may cost up to $100. To learn more about these approved credit counseling agencies, go to: https://www.justice.gov/ust/eo/bapcpa/ccde/CC_Files/CC_Approved_Agencies_HTML/cc_washington/cc_washington.htm#Section_Washington_WA_WAW%3CBR%3EWestern%20District%20of%20Washington

• Do credit card debts disappear in a Chapter 13 bankruptcy in Bellingham?

  In Bellingham, most credit card debts in Chapter 13 bankruptcy are paid a small percentage through the filer's monthly payments to their trustee. Chapter 13 bankruptcy can eliminate some credit card debt and can be paid from 0% to 100% depending on the debtor's budget. Additionally, debtors in Bellingham who file for Chapter 13 bankruptcy can rebuild their credit score and stop harassing phone calls from creditors.

• How to qualify for Chapter 7 bankruptcy in Bellingham?

  Debtors in Bellingham must meet the Washington bankruptcy means test in order to file for Chapter 7 bankruptcy. This test requires them to consider their family size, understand their marital status, and meet the income requirements based on Washington median income levels. Families in Bellingham with one to five members must have a combined income of $83,000 to $148,000, while families with six to nine members must have a combined income of $158,000 to $187,000.

• Do high-net-worth individuals have the right to file for a Chapter 11 bankruptcy case in Bellingham?

  Yes, high-net-worth individuals in Bellingham can file for Chapter 11 bankruptcy, as it is the most expensive. High-net-worth individuals can use Chapter 11 bankruptcy to keep control of their estates while repaying their debts. The creditors and the Washington court work together to approve the repayment plan, and there is no trustee unless necessary. However, high-net-worth individuals in Bellingham cannot file for Chapter 11 bankruptcy if they did not receive credit counseling and a previous petition was dismissed within 180 days.

• In Bellingham, how long is the waiting period to apply for mortgages after a Chapter 13 bankruptcy discharge?

  After a Chapter 13 bankruptcy discharge, it takes one to two years to obtain an FHA mortgage in Bellingham, 12 months for a USDA loan, and one year for a VA loan. A conventional loan has a two-year waiting period, while a dismissed Chapter 13 bankruptcy case has a four-year waiting period. Before applying for mortgage programs in Bellingham, those who have recently been discharged from a Chapter 13 bankruptcy must obtain permission from the bankruptcy trustee and provide proof of on-time payments.

• What does a bankruptcy attorney do?

  Bankruptcy attorneys help clients understand whether they qualify for bankruptcy and what their best options are. They also prepare and file petitions, answer questions during the proceedings, and educate clients about potential best steps for a positive bankruptcy outcome. Bankruptcy attorneys might also file motions or paperwork if creditors dispute the bankruptcy, or to stop creditors from taking collections actions forbidden by the bankruptcy.

• What happens when you file bankruptcy?

  Bankruptcy is a formal process that individuals, married couples, or businesses can enact when they are no longer able to pay creditors. In a bankruptcy proceeding, filers are allowed to reduce debt to more manageable levels to best pay off money owed.

  Once the bankruptcy process is initiated, debt collectors can no longer seek repayments outside of the arrangements detailed in the bankruptcy settlement. Some forms of bankruptcy result in the liquidation of assets to pay back debts, while others allow filers to retain most of their possessions and investments. Many types of unsecured debt can be managed with bankruptcy filings, but not all.

• Can you file bankruptcy on student loans?

  Under most circumstances, student loans aren't dischargeable and aren't included in bankruptcy proceedings. In rare cases, it may be possible to eliminate student loans through bankruptcy, but only if the courts determine that continuing to pay the loans would impose an undue hardship. Meeting the criteria for undue hardship is challenging, and most bankruptcy filers don't qualify.

• What is bankruptcy fraud?

  Bankruptcy fraud is a blanket term that refers to any kind of dishonest bankruptcy proceeding, which can include:

  • Hiding assets by transferring them to another person or entity
  • Intentionally omitting assets when reporting to the court
  • Destroying or withholding required documents
  • Knowingly making false statements to bankruptcy trustees or creditors

• How long is bankruptcy on public record?

  How long bankruptcy stays on public record depends on the kind of bankruptcy filing in question. Chapter 7 bankruptcy remains on the record for 10 years as there isn't necessarily a repayment component. Chapter 13 bankruptcy remains on the record for seven years as some obligations are repaid following filing based on the terms of a discharge settlement.

• Does bankruptcy clear tax debt?

  Bankruptcy can clear tax debt, depending on the circumstances. Taxes are dischargeable under Chapter 7 bankruptcy, not Chapter 13, and only if the tax debt is:

  • Federal income tax debt related to current properly filed tax returns
  • Honestly incurred with no fraud or evasion
  • At least three years old
  • Assessed at least 240 days before bankruptcy filings

  Existing liens are not eliminated with bankruptcy.

  
  

• Can they take my car in Chapter 7 bankruptcy?

  In many cases, it's possible to keep a vehicle following Chapter 7 bankruptcy. The Chapter 7 Motor Vehicle Exemption allows filers who own their vehicles outright or who are up to date with payments to keep their cars. However, those behind on making car payments are required to arrange a repayment plan. Otherwise, the vehicle may be repossessed as a part of the proceedings.

• How bad is it to file bankruptcy twice?

  Although possible, due to the damaging nature of bankruptcy, filing bankruptcy more than once isn't recommended. Filing multiple times puts a serious burden on one's credit report, making it harder to get a loan, buy a house, buy a car, or even open credit cards.

  Note that filing for bankruptcy isn't something that can be done at a filer's leisure. There are time limits following bankruptcy cases that dictate when it's permissible to file again. For example, after Chapter 7 bankruptcy, filers must wait at least eight years before filing Chapter 7 again or four years before filing Chapter 13.

• Can anyone file bankruptcy?

  Anyone can file bankruptcy, but there are limitations regarding which form of bankruptcy is permissible. Qualifying for Chapter 7 requires a means test that evaluates income, debt levels, and income left over each month after paying basic obligations. Income over the median set by the court and monthly income that allows meaningful payments toward unsecured debt can disqualify filers from Chapter 7, which is generally the preferred form of bankruptcy due to the possibility of a full discharge. Anyone can file Chapter 13 bankruptcy, but the terms are less favorable. In most cases, some debts must be repaid following a successful filing. Chapter 13 is also more likely to result in asset forfeiture.

• How will bankruptcy affect my credit score?

  Bankruptcies are noted on credit reports. How much a bankruptcy might drop a person's credit score depends on how high the score was to begin with, but generally speaking, the hit can be as much as 100 to 200 points. Often scores are already dropping because people filing for bankruptcy may have already missed payments on debts. Chapter 13 bankruptcies are listed on credit reports for seven years from the filing date, while Chapter 7 bankruptcies are listed for 10 years from the filing date. This is because Chapter 13 bankruptcies require at least partial payment of debts owed.

• What are the benefits of filing for bankruptcy?

  Filing a bankruptcy petition causes an automatic stay. This legally stops creditors from taking further action to collect debt, including garnishing wages or foreclosing on property. Going through a bankruptcy successfully means that debts included in the bankruptcy are discharged and don't have to be paid back, except as provided in a Chapter 13 repayment plan. Bankruptcy can help someone recover from financial duress so they can make better decisions and improve financial situations in the future. Disadvantages can include temporary lower credit scores and limitations on spending and financing.

• What's the difference between debt settlement and bankruptcy?

  Debt settlement occurs when people negotiate with individual creditors. The creditor agrees to take a payment that's lower than what someone owes and call the debt “paid in full.” Bankruptcy is a legal process that causes debts to be dismissed after someone proves they don't currently have the means to pay their debts as owed. Typically, someone can't enter into bankruptcy and also settle some debts, because the court would see that as favoring one creditor over another.